“We have plenty of headroom for acquisitions,” Rollins said
in a telephone interview. “Deals are more likely to be in
aerospace. We saw strong growth at Boeing and Airbus and
commercial aircraft sales will continue to be strong.”

Senior’s adjusted pretax profit rose to 91.1 million pounds
in 2012 as it tapped record production rates at Airbus and
Boeing, aided by the 54 million-pound purchase of U.K. wing and
seat structures producer Weston in 2011. Recent deals included
the acquisition of Wisconsin-based GAMFG Precision for $45
million and Britain’s Atlas Composites for 2.5 million pounds.

Senior surged as much as 8 percent, the biggest gain since
Aug. 25, 2011, before trading 6.2 percent higher at 234.90 pence
as of 9:29 a.m. in London. The shares have gained 17 percent
this year, valuing the business at 970 million pounds.

Neo Boost

Aerospace sales will be driven by commercial activities,
including Airbus’s revamped A320neo, on which Senior will have
50 percent more work through a contract to provide parts to
Pratt & Whitney, one of two engine suppliers, Rollins said.

The CEO said that while Boeing, responsible for 16 percent
of Senior’s aerospace sales, has frozen deliveries of the 787
while it examines battery faults, the U.S. planemaker still aims
to double production to 10 aircraft a month by early 2014.

Engineering costs, due to peak in the first half, will be a
slight drag on earnings, Rollins said. In addition to the neo,
Senior is involved in developing the Airbus A350 wide-body and
single-aisle Bombardier Inc. (BBD/B) CSeries, both due to fly this year.

The performance of Senior’s military business is likely to
weaken as production of Lockheed Martin Corp. (LMT)’s C-130J transport
plane and the Sikorsky UH-60 Black Hawk helicopter slows,
Rollins said. Those reductions are factored into the 2013
forecast, which predicts “further progress” this year.

Senior last year sold its Hargreaves construction business
and plans no further divestments, Rollins said.